Qualcomm Inc. (NASDAQ: QCOM)announced on Thursday that it has rejected Broadcom Ltd.’s (NASDAQ: AVGO)final offer to acquire Qualcomm for $82.00 per share or $121 billion.
Broadcom had previously offered Qualcomm $70 per share, which Qualcomm had also rejected. Qualcomm ultimately decided that being acquired by Broadcom only undervalues the company itself and its acquisition for NXP Semiconductors..
“Your proposal ascribes no value to our accretive NXP acquisition, no value for the expected resolution of our current licensing disputes and no value for the significant opportunity in 5G.” said Qualcomm in a statement.
Hock Tan, Broadcom’s CEO, showed interest in Qualcomm due to its semiconductor business, which he believed he would be able to leverage to become a major chip manufacturer in the market and build a 5G network.
Qualcomm also had concerns regarding if the transaction would complete or not due to regulators. Although Broadcom had said that it was very confident that a deal could be reached within 12 months of signing, but if regulators were to block the deal, Broadcom had plans to a offer a higher breakup fee, according to sources familiar with the matter.
Although Qualcomm has rejected the “final offer”, the company is still open to discuss “serious deficiencies in value and certainty” in the proposal.